With the semiconductor scarcity easing a bit, the wholesale despatches of passenger automobiles (PVs) in May improved over the identical month in 2019, which was a non-Covid yr. However, gross sales had been nonetheless decrease than the extent achieved in 2018 when the phase was witnessing a good-looking progress. The two-wheeler wholesale despatches in the course of the month weren’t solely far off from the volumes achieved three years in the past, they had been even beneath the figures attained 9 years again.
The wholesale despatches of PVs jumped 10.61% to 251,052 items in May from 226,975 items throughout the identical month in 2019, information launched by Society of Indian Automobile Manufacturers (Siam) on Friday confirmed. In May 2018, PV volumes stood at 301,238 items.
While there may be nonetheless uncertainty over when the availability of semiconductors will normalise, the demand for PVs stays very excessive. Some of the favored fashions, notably SUVs, have ready intervals operating into months.Relatively increased possession prices, particularly within the entry-level phase, continued to influence the demand for two-wheelers with their wholesale despatches in May plunging 27.36% to 1.25 million items. The semiconductor scarcity has harm the gross sales of the premium bikes as effectively. Similar to two-wheelers, the three-wheeler volumes dipped 44.74% to twenty-eight,542 items.The complete wholesale despatches, together with that of PVs, two-wheelers and three-wheelers, fell 23.52% to 1.5 million items.
“Sales of two-wheelers and three-wheelers continue to remain sluggish in the month of May 2022, as they are even below what it was 9 years and 14 years ago, respectively. Sales of PVs are also still below 2018 level,” mentioned Rajesh Menon, director normal, Siam.
Menon famous that the current authorities interventions would assist in easing the supply-side challenges however the second hike in repo-rate by the Reserve Bank of India (RBI) and a rise in third-party insurance coverage charges might change into tougher for the shoppers, thereby impacting demand.
Source: www.financialexpress.com”